Scheduling earnings represents an afterthought and typically represents a check-the-box type activity for investor relations. In my tenure, I have never given such a release a second thought. I have a template update it accordingly each quarter and send it to the wire.
Problems arise when a company fails to schedule their earnings in advance.
Why?
Not scheduling earnings in advance sends a signal that the company does not value anyone in the investor communities time. Not scheduling earnings angers the following constituents:
Buy-Side: The Buy-Side needs earnings scheduled in advance for several reasons. First, the Buy-Side covers hundreds of stocks, so for resource allocation purposes surprises are a negative. Second, no one buying and selling stock wants to be caught flat-footed by surprisingly positive or overly negative results. Not know what is going on costs lost of money.
Sell-Side: The Sell-Side Analyst is covering 10 to 20 stocks on average. He or she needs earnings scheduled in advance so they can plan resources, meetings, and their life accordingly.
Retail: The retail investor needs to know when earnings occurs so he or she can plan their trading accordingly.
Exchanges: The exchanges like scheduled earnings because market-makers and specialists do not like surprises (see buy-side).
One of the easiest ways to lose credibility in Investor Relations revolves around dropping an earnings release with no warning.
My recent experience finds that biotechnology companies like the practice of dropping earnings releases with no warning. Two stocks I own, Cyclerion Therapeutics (CYCN), and Myovant Sciences (MYOV), both dropped earnings releases this quarter without warning.
Next time do yourself a favor and make sure you continue to publish the overlooked and underappreciated press release that schedules earnings.
